Repository: UIHistories Project: Board of Trustees Minutes - 1938 [PAGE 553]

EXTRACTED TEXT FROM PAGE:

1937]

UNIVERSITY OF ILLINOIS

551

Company to deliver equipment for the second unit of the Medical and Dental College Laboratories Building, according to its contract.

On motion of Mr. Moschel, the President of the University was authorized to protect the interests of the University in this matter.

USE OF NAME UNIVERSITY REVOLVING F U N D

(32) A joint report of the Comptroller and the University Counsel on the use of the name "University Revolving Fund." October 13, 1937 President A. C. Willard, 355 Administration (W)

DEAR PRESIDENT WILLARD:

In accordance with your request, we have considered the question of the name of the University of Illinois Revolving Fund. This title was introduced in 1933, when an amendment to the State Finance Act was passed, requiring that the receipts of the University other than from trust funds or Federal aid be turned in to the State Treasury. We enclose a copy of the provisions for the fund as they now stand in the Statutes. The phraseology employed in the first paragraph of the section is almost identical with that employed in the same Act relating to similar receipts of the Normal schools. This fact was one of the reasons for using the phraseology. The receipts of the fund are of several types: (a) Receipts which are direct income and are applied to the educational budget such as student fees, clinic fees, miscellaneous sales, and other items. These items make up approximately two-thirds of the total of the fund. (b) Receipts applicable to the maintenance of self-supporting activities including agricultural operations, residence halls, and student hospital. (c) Non-income items including student fees which are rebated as a result of student withdrawals and other refunds, and reimbursements from Federal departments, Athletic Association, and other organizations, for material and service furnished them. We enclose a statement of the actual receipts for the last biennium and the estimate for the current biennium. A considerable part of the receipts of self-supporting activities are of a revolving character, while all of the items in the non-income group are of that type. Consequently, while the major portion of the fund represents income in the true sense of the term, a considerable part of the fund is of a revolving character. When any money is deposited in the State Treasury, it can be disbursed only as a result of appropriation by the General Assembly; consequently the appropriation bill of the University must include a sufficient amount to cover the disbursements of these receipts, not only for educational purposes, but also for the operations of self-supporting activities and also strictly revolving transactions, such as rebates of fees, expenditures for service to the University organizations, and the like. The budget of the University provides for expenditures from this fund as well as from the General Revenue Fund and the University of Illinois Fund. The latter fund consists of the proceeds of a one-third mill tax for the University levied in accordance with an Act passed in 1911 and amended in 1933 of which we also enclose a copy. The appropriation bill of the University (see minutes of July 16, 1937, page 302) provides for appropriations from the General Revenue Fund and the University of Illinois Fund for various purposes as required by the State Finance Act. The amount appropriated for these items is not sufficient in any case to cover the budget for these purposes. For that reason the appropriation of the University of Illinois Revolving Fund, as per Section 8 of the appropriation bill, covers expenditures for all of these purposes. We enclose a statement of disbursements through the State Treasury for the biennium 1935-37, which indicates the amount for each object of expenditure paid from all of the various funds. We also enclose a summary statement of our budget for the biennium 1937-39, covering the total of all State appropriations made to us and indicating the funds from which these appropriations must come.